SKF India (500472) Q4 24/25 earnings summary

Executive summary

• Q4 sales grew 1% year-over-year, with full-year sales up 8% to INR 48,305 million, driven by strong industrial (10%) and automotive (6%) growth, while exports grew 3%.

• Profit before tax (PBT) margin for Q4 rose to 23.3%, mainly due to cost-saving efforts and transfer pricing adjustments; full-year PBT margin was 15.8%, down 0.6 percentage points year-over-year.

• Net cash flow from operations declined 67% year-over-year for FY25 due to increased working capital from higher inventory and receivables.

• Board approved unaudited Q4 and audited annual results for FY25, with auditors issuing unmodified opinions.

• Final dividend of ₹14.5 per share recommended for FY25, subject to AGM approval.

Financial highlights

• Full-year revenue increased to INR 49,199.2 million, with industrial contributing 52%, automotive 40%, and exports 8%.

• EBITDA margin for FY24 was 17.5%; automotive 18%, industrial 17%.

• FY25 profit before tax: ₹7,632 million, margin at 15.8%.

• Standalone net profit for FY25 was ₹5,658.1 million, with EPS at ₹114.4.

• Cash and cash equivalents decreased to ₹7,107.6 million as of March 31, 2025.

Outlook and guidance

• GDP growth in relevant sectors expected above 6%, with inflation below 4%.

• Automotive segment to see continued growth in commercial vehicles, tractors, SUVs, and EVs; industrial segment expects stable to slightly higher growth in steel, food & beverage, wind, railways, and infrastructure.

• Margins for FY25 expected to be in line with FY24, with ongoing efforts in operational efficiency and portfolio management.

• CapEx to double to INR 250-270 crores per annum over the next 2-3 years, mainly for new industrial plant and capacity expansion.

• Dividend payout of ₹14.5 per share proposed, totaling ₹716.9 million, pending AGM approval.